Correlation Between Hurco Companies and Argent Mid
Can any of the company-specific risk be diversified away by investing in both Hurco Companies and Argent Mid at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hurco Companies and Argent Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Argent Mid Cap, you can compare the effects of market volatilities on Hurco Companies and Argent Mid and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hurco Companies with a short position of Argent Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Argent Mid.
Diversification Opportunities for Hurco Companies and Argent Mid
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hurco and Argent is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Argent Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argent Mid Cap and Hurco Companies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hurco Companies are associated (or correlated) with Argent Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argent Mid Cap has no effect on the direction of Hurco Companies i.e., Hurco Companies and Argent Mid go up and down completely randomly.
Pair Corralation between Hurco Companies and Argent Mid
Given the investment horizon of 90 days Hurco Companies is expected to generate 6.18 times less return on investment than Argent Mid. In addition to that, Hurco Companies is 2.16 times more volatile than Argent Mid Cap. It trades about 0.01 of its total potential returns per unit of risk. Argent Mid Cap is currently generating about 0.09 per unit of volatility. If you would invest 2,388 in Argent Mid Cap on August 26, 2024 and sell it today you would earn a total of 1,315 from holding Argent Mid Cap or generate 55.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurco Companies vs. Argent Mid Cap
Performance |
| Timeline |
| Hurco Companies |
| Argent Mid Cap |
Hurco Companies and Argent Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Argent Mid
The main advantage of trading using opposite Hurco Companies and Argent Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies position performs unexpectedly, Argent Mid can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Argent Mid will offset losses from the drop in Argent Mid's long position.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
| Argent Mid vs. Vanguard Mid Cap Index | Argent Mid vs. Vanguard Extended Market | Argent Mid vs. iShares Core SP | Argent Mid vs. SPDR SP MIDCAP |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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